[7], Ensete, known locally as false banana, is an important food source in Ethiopia's southern and southwestern highlands. Top 3 Exported Goods (2021): Coffee & Spices, Vegetables, and Oil Seeds. Recently, the GOE has permitted imports of basic food commodities using franco-valuta scheme to narrow supply and demand gap and reduce rising inflation in the country. Though the raising of livestock always has been largely a subsistence activity,[22] intensive, factory farm facilities are gaining in popularity and are present in Addis Ababa and Debre Zeit, run by Ethiopian agribusiness ELFORA. [7], By the mid-1960s, many sectors of Ethiopian society favored land reform. Beef exports are also growing, with additional market opportunities on the horizon. Grain consumption, especially for wheat and wheat-based products like bread and pasta, continues to climb as incomes rise and more people move to urban centers. Almost the entire rural population was involved in some way with animal husbandry, whose role included the provision of draft power, food, cash, transportation, fuel, and, especially in pastoral areas, social prestige. In addition, the GOE is looking to the agro-processing sector (also a best prospect sector detailed below) as one engine to spur future economic growth. Since the 2000s, Ethiopia has emerged as one of the fastest-growing economies in Africa. Sandy desert soils cover much of the arid lowlands in the northeast and in the Ogaden of southeastern Ethiopia. Lake Tana Subbasin's Economy and The Role of Natural Resources -- 22. Secure .gov websites use HTTPS processed food, beverages, and livestock products meat, milk, and eggs), as well as the textile/apparel and leather industries. Foreign Direct Investment Attraction Events, Services for U.S. Companies New to Exporting, Services for U.S. Companies Currently Exporting, Leading Sectors for US Exports & Investments, Information and Communication Technology (ICT), Licensing Requirements for Professional Services, Improve income and livelihood options for farming and pastoral communities through increased productivity and competitiveness, Raise export of agricultural output and substitute imports, Make agriculture a viable and profitable enterprise through value addition, Enhance livestock health access and quality, Preserve animal genetic resources and increase pastoral research, Improve the development of animal feed and access to markets, Develop livestock specific extension package for each livestock type. Put in perspective, Ethiopia's key agricultural sector has grown at an annual . 1401 Constitution Ave NW Commercial Imports from the United States, Source: USDA/Foreign Agriculture Service, Addis Ababa, (Total market size = (total local production + imports) - exports). Common vegetables include onions, peppers, squash, and a cabbage similar to kale. Agriculture is the mainstay of Ethiopian economy involving major source of employment and gross national product. As reviewed from different literatures household demographic characteristics, household resource endowments, social, cultural, infrastructural, institutional and economic factors influence the . The poor performance of agriculture was related to several factors, including drought; a government policy of controlling prices and the free movement of agricultural products from surplus to deficit areas; the unstable political climate; the dislocation of the rural community caused by resettlement, villagization, and conscription of young farmers to meet military obligations; land tenure difficulties and the problem of land fragmentation; the lack of resources such as farm equipment, better seeds, and fertilizers; and the overall low level of technology. The Awash River basin supports many large-scale commercial farms and several irrigated small farms. Food production had consistently declined throughout the 1980s. }, author={Tesfaye Haile}, journal={Ethiopian Journal of Agricultural Sciences}, year={1988}, volume={10}, pages={85-97} } T. Haile; Published 14 July 1988; Geography; Ethiopian Journal of Agricultural Sciences Brighter Green, 2. Forestland, most of it in the southwestern part of the country, accounted for 4 percent of the total land area, according to the government. The reforms success in supporting Ethiopias economic growth in part depends on the development of the agro-processing sector (e.g. In Ethiopia, agriculture is the mainstay of the majority of the population and major driver of the national economy. Land Utilization (Private Peasant Holdings, Meher Season) 2020/21 (2013 E.C.) NEED FOR A SPECIFIC TREATMENT OF AGRICULTURE . Ethiopia aims to reach lower-middle-income status by 2025. landholdings are tiny, fragmented and unsuitable for modern methods of agriculture. 2. The contribution of agriculture to growth in the manufacturing and services sectors was not significant between 1978 and 1998. The chicken business also shows promising opportunities. Share sensitive information only on official, secure websites. Due to physical, economic and social factors the. "Agriculture" (and subsections), updated with latest figures from the CSA. Production jumped from 43,500 tons in 197475 to 74,900 tons in 198485. Only 15 percent of the roads are paved; this is a problem particularly in the highlands, where there are two rainy seasons causing many roads to be unusable for weeks at a time. Ethiopia's crop agriculture is complex, involving substantial variation in crops grown across the country's different regions and ecologies. This site contains PDF documents. Develop a legal framework for agriculture-specific financial services such as micro-lending, crop insurance and forward contracts. Agriculture in Ethiopia. To make matters worse, during the 1972-74 drought and famine the imperial government refused to assist rural Ethiopians and tried to cover up the crisis by refusing international aid. In addition to cattle, small ruminants (goats and sheep) and beasts of burden (donkey, horse, mule) are not uncommon in this farming system. Their resistance to this change increased when Zemecha members campaigned for collectivization of land and oxen. Textile and apparel manufacturing and equipment. [15], About 98 percent of the coffee was produced by peasants on smallholdings of less than a hectare, and the remaining 2 percent was produced by state farms. @article{Haile1988CausesAC, title={Causes and Characteristics of Drought in Ethiopia. Agriculture. Accordingly, state farms received a large share of the country's resources for agriculture; from 1982 to 1990, this totaled about 43% of the government's agricultural investment. Young herders take their text books of the upcoming school year to the grazing grounds. The most important oilseed is the indigenous Niger seed (neug), which is grown on 50 percent or more of the area devoted to oilseeds. A .gov website belongs to an official government organization in the United States. Individual poultry farms supply eggs and meat to urban dwellers. Agriculture is the backbone of the economy of the country as the following facts indicate. Land tenure rights as well as natural disasters, such as floods, hamper the countrys ability to quickly expand cotton production. y's natural potential, the agricultural performance remains weak; high dependency on rain-fed Overall, the economic reform plan sets out required strategic interventions to increase agricultural productivity and modernization of agriculture in the next 10 years. By 1989, the area covered by the State Farms had grown to a total of 220,000 hectares. [7] In EFY 20072008, the CSA reported that 17,827,387.94 quintals of pulses were produced on 1,517,661.93 hectares, an increase from the 15,786,215.3 quintals produced on 1,379,045.77 hectares. Ethiopia's economy is based on agriculture, which accounts for 46% of GDP and 85% of total employment. Citation: Kehali Jembere, Tekalign Mamo and Kibebew Kibret, 2017. Agriculture dominates the Ethiopian economy, accounting for about 50 percent of its GDP and 82 percent of its employment. Source: Source: USDA/Foreign Agriculture Service, Addis Ababa, Total Market Size = (Total Local Production + Total Imports) (Total Exports). Examining the characteristics of stakeholders in Lake Tana Sub-basin resource use, management and Governance -- 21. The northern parts of the highlands are almost devoid of trees. Resultantly there has been significant uptake of resistant wheat varieties among Ethiopian farmers since 2014. Second, because peasants faced food shortages, they gave priority to cereal staples to sustain themselves. Available data on crop production show that land reform and the various government rural programs had a minimal impact on increasing the food supply, as production levels displayed considerable fluctuations and low growth rates at best. 133 8.5.2. [7], Ethiopia's estimated livestock population is often said to be the largest in Africa. In order to reduce the severity of this problem, several agricultural development strategies have been implemented since the 1960's. Additional investment opportunities are expected in the textile and garment sector as well as cotton production. Source: United Nations Comtrade. U.S. Department of Commerce Peasant associations often were periodically compelled to redistribute land to accommodate young families or new households moving into their area. Meat and milk yields are low and losses high, especially among calves and young stock. [7], Although the issue of land reform was not addressed until the Ethiopian Revolution in 1974, the government had tried to introduce programs to improve the condition of farmers. The clearing of land for agricultural use and the cutting of trees for fuel gradually changed the scene, and today forest areas have dwindled to less than 4% of Ethiopia's total land. Resembling the banana but bearing an inedible fruit, the plant produces large quantities of starch in its underground rhizome and an above-ground stem that can reach a height of several meters. Local demand for meat, milk and eggs is growing as the economy and population grow. The Ethiopian Government set up the Growth and Transformation Plan (GTP) to reach certain goals between 2011 and 2015. With support from the African Development Banks agricultural Technologies for African Agricultural Transformation program. Approximately 25% of Ethiopia's population depended directly or indirectly on coffee for its livelihood. Background and Objective: Detailed characterization of bio-physical resources in agricultural landscapes and documenting locally used soil fertility management practices is required for developing site-specific management scenarios in the study area. Download. Explain the main contribution, potentials, characteristics , and problems of Ethiopian agriculture. With the GOE looking to partially liberalize the wheat import market, local millers are beginning to explore opportunities to import wheat directly. Such wide price variations created food shortages because farmers as well as private merchants withheld crops to sell on the black market at higher prices.[7]. Between 198485 and 198687, at the height of the drought, Ethiopia received more than 1.7 million tons of grain, about 14 percent of the total food aid for Africa. Ethiopias cotton production is insufficient to meet the growing demand from the textile and apparel sector. This government-led outreach, combined with low labor and electricity costs, has already yielded fruits with a number of Turkish, Indian, Chinese, Indonesian and other foreign firms opening businesses in Ethiopia in recent years. The market is segmented by type into food crops, fruits, and vegetables. Contributions, potentials and characteristics of agriculture in Ethiopia The contributions of agriculture in Ethiopia The Ethiopian economy is an agrarian economy. The agriculture sector is projected to grow at 6.2% per annum over the next ten years. Matou, P., Y. Todo, et al. major pulse crops grown in the country are chickpea, haricot beans, lentils, fababean and peas, The Ethiopian Orthodox Church traditionally has forbidden consumption of animal fats on many days of the year. Title. In order to address the ongoing drought, the GOE is renewing its emphasis on developing the countrys irrigation systems and water-harvesting methodologies. Investments in cotton production, as well as any other agricultural commodity, require considerable due diligence because of a variety of complicated issues, including landownership rights and the potential for conflict. This modest increase, however, was not enough to offset a general decrease in GDP during the same period. [7], The plains and low foothills west of the highlands have sandy and gray-to-black clay soils. Industrial Parks Development Corporation (IPDC), Textile Industry Development Institute (ETIDI), Ethiopian Cotton Producer, Ginners, and Exporters Association (ECPGEA). The pilot areas selected for establishment of the Agro-Industrial Parks are mainly based on the potential of existing agricultural resources and allied sectors, infrastructure, and facilities. That is why per hectare yield of crop is . In addition, the rugged topography of the highlands, the brief but extremely heavy rainfalls that characterize many areas, and centuries-old farming practices that do not include conservation measures have accelerated soil erosion in much of Ethiopia's highland areas. Ethiopia's agricultural sector has developed favourably over the past decade, but rapid population growth, limited access to fertile land, and volatile agricultural outcomes pose problems for the . [7], Pulses are the second most important element in the national diet and a principal protein source. 27 May 2021. For northwest and central Ethiopia, fertilizer usage determinants are estimated simultaneously with technology-specific production functions. In 198182, out of the AMC's purchases of 257,000 tons of grain, Gojjam accounted for 32 percent of the purchases, and Arsi, Shewa, and Gonder accounted for 23%, 22%, and 10%, respectively. Of the 25 World Reference Base/FAO soil orders, 17 exist in Ethiopia. At the same time, to accelerate the countrys agricultural development, the government established the Agricultural Transformation Institute (ATI) to address systemic bottlenecks in the agriculture sector by supporting and enhancing the capability of the Ministry of Agriculture (MOA) and other public, private, and non-governmental implementing partners. Causes and Characteristics of Drought in Ethiopia. [11], Another major component of the Derg's agricultural policy was the development of large-scale state farms. Sorghum and millet, which are drought resistant, grow well at low elevations where rainfall is less reliable. The major product in are teff, wheat, maize, sesame, Niger, linseed etc. Despite this potential, however, Ethiopian agriculture has remained underdeveloped. 3. [21] It is estimated to number over 150 million in 20072008. The high concentration of animals in the highlands, together with the fact that cattle are often kept for status, reduces the economic potential of Ethiopian livestock. In pastoral areas, livestock formed the basis of the economy. There also was concern that villagization could have a negative impact on fragile local resources, accelerate the spread of communicable diseases, and increase problems with plant pests and diseases. Agriculture is defined as the purposeful tending of animals and plants.It provides: basic food supplies for the population; raw materials like cotton, sugar cane, oil seeds, etc. To achieve this, the GOE seeks to leverage on developing huge unutilized arable land, modernizing production systems, and improving uptake of technology. Total required investment costs for the IAIPs stand at U.S. $870 million and initial investment costs are estimated at U.S. $266 million. For the foreseeable future, the demand for cotton is expected to outstrip local supplies, making imports necessary. Research on the constraints, characteristics, and performance of the enterprise sector in low-income countries is often constrained by scarcity . The market for agriculture in Ethiopia is projected to register a CAGR of 5.4% during the forecast period, 2021-2026). UNJP-RWEE was a five-year long initiative with the objective of accelerating the economic empowerment of rural women . The AMC was a government agency whose objective was to influence the supply and price of crops. The amount of coffee inspected in the fiscal year 20072008 by the Ethiopian Coffee and Tea Authority (ECTA) was 230,247 tons, a decrease of almost 3% from the previous fiscal year's total of 236,714 tons. More background information on the cotton situation in Ethiopia can be found in our cotton report from 2019/20. Between 1976 and 1985, the government constructed 600,000 kilometers of agricultural embankments on cultivated land and 470,000 kilometers of hillside terraces, and it closed 80,000 hectares of steep slopes for regeneration. The UN Joint Programme focused on Rural Women's Economic Empowerment (UNJP-RWEE) was launched in Ethiopia in 2014 by UN Women, the Food and Agriculture Organization of the UN (FAO), the World Food Programme (WFP), and the International Fund for Agriculture Development (IFAD). Ethiopia one of the fastest-growing economies in the continent. Agriculture, which constituted 46 percent of GDP and more than 80 percent of exports, is by far the most important economic activity in the Ethiopian economy. [5] Ethiopia's livestock population is believed to be the largest in Africa, and in 20062007 livestock accounted for 10.6% of Ethiopia's export income, with leather and leather products making up 7.5% and live animals 3.1%. Recurring drought takes a heavy toll on the animal population, although it is difficult to determine the extent of losses. The Government of Ethiopia (GOE) has embarked on a ten-year economic development plan (2021-2030) where agriculture is on the top of priority sectors. In the dry lowlands, persistent winds also contribute to soil erosion. The farmers continued to utilize their ancient system of production despite changing ecological and population pressures. Contagious diseases and parasitic infections are major causes of death, factors that are exacerbated by malnutrition and starvation. [23], Ethiopia has great potential for increased livestock production, both for local use and for export. Characteristics of agricultural landscape features and local soil fertility management practices in Northwestern Amhara, Ethiopia. Productivity and technology. Agricultural production has been highly dependent on natural resources for centuries [].However, increased human population and other factors have degraded the natural resources in the country thus seriously threatening sustainable agriculture and food security [2, 3]. The Ministry of Agriculture (MoA) is the Ethiopian government ministry which oversees the agricultural and rural development policies of Ethiopia on a Federal level. An estimated 85 percent of the population are engaged in agricultural production. With about 117 million people (2021), Ethiopia is the second most populous nation in Africa after Nigeria, and still the fastest growing economy in the region, with 6.3% growth in FY2020/21. See, for example, Central Statistical Authority of Ethiopia, "National Statistical Abstract. The main objective of this review is to indicate the policy gaps in terms of access . The Mengistu regime encouraged fruit and vegetable production. The objective of the LSMS-ISA is to collect multi-topic panel household level data with a special focus on improving agriculture statistics and the link between . These types of soils are found in much of the Southern Nations, Nationalities, and People's Region (SNNPR). [7], Ethiopia's demand for grain continued to increase because of population pressures, while supply remained short, largely because of drought and government agricultural policies, such as price controls, which adversely affected crop production. The existence of so many land tenure systems, coupled with the lack of reliable data, made it difficult to give a comprehensive assessment of landownership in Ethiopia, as well as depressed the ability of peasants to improve themselves. Section D. Soil acidity is one of the most important environmental threats to the Ethiopian highlands where the livelihood of the majority of people is reliant on agriculture. [16] In 20062007 (the latest year available), exports of oilseeds accounted for 15.78% of export earnings (or million 187.4 Birr) and pulses 5.92% (or 70.3 million Birr). As a result, agriculture continued to grow, albeit below the population growth rate. The most important agricultural exports include coffee, hides and skins (leather products), Pulses, oil seeds, beeswax, and, increasingly, tea. According to Infomineo (2016), the key agricultural sectors in Ethiopia are the following: Coffee & tea; Ethiopia has a great potential for coffee production, thanks to the country's abundant rainfall, optimum temperatures, conducive altitude, and fertile soil. The agricultural production trends throughout the 1980's up to mid-1990's were characterized by wide fluctuations in total output and weak growth, with grain production increasing at rate of 1.37% annually compared to population growth of 2.9 % (World Bank, 2004). Ethiopia is also Africa's second biggest maize producer. Agriculture is one of the best prospect sectors for growth in Ethiopia. According to the Economist Intelligence Unit (EIU), Ethiopia's GDP growth rate will increase by around 7.8% to 10% by 2023. At the moment, there are a few U.S. and foreign firms that have partnered with local companies in the milk business, which has considerable room for growth, as milk consumption is still very low. [7], As of 2008[update], some countries that import most of their food, such as Saudi Arabia, had begun planning the development of large tracts of arable land in developing countries such as Ethiopia. The study sought to assess the role of smallholder farming in crop productivity and market access . These areas are used by pastoralists who move back and forth in the area following the availability of pasture for their animals. the agriculture sector in Ethiopia relies to a greater extent on availability of suitable land, moisture, climatic . For example, during the pre-reform period, sixty-one out of 200 farmer respondents owned three or four parcels of land; after the reform, the corresponding number was 135 farmers.
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